For Year Ended December $31$

Sales $(9,600$ units at $$225$ each$)$ $$2,160,000$

Variable costs $(9,600$ units at $$180$ each$)1,728,000$

Contribution margin $432,000$

Fixed costs $324,000$

Income $$108,000$

Units sold $9,600$

Selling price per unit $$225$

Variable cost per unit $$180$

Target income $$162,000$

Required:

$1.$ Assume Hudson has a target income of $$162,000.$ What amount of sales dollars is needed to produce this target income?

Dollar sales for target income $$2,430,000$

$2.$ If Hudson achieves its target income, what is its margin of safety $($in percent$)?$

Margin of safety